Group 2: Dafilmoto, Garcia, Gabule, Dorman, Guindoy, Cabasag, Estanero

Korean Business Culture and Etiquette

1. Dining

A great deal of relationship building takes place in bars

and restaurants. Always accept dinner invitations as this

is the Korean’s opportunity to assess your

trustworthiness and whether they wish to conduct business

with you.

2. Age and status

Respect for age and status are very important in Korean

culture, with hierarchy affecting all aspects of social

interactions. Everyone has a role in society as a result

of hierarchy - therefore it is vital to respect it.

Koreans are most comfortable interacting with someone

they consider their equal. Status is largely determined

by someone’s role in an organisation, which organisation

they work for, which university they went to and their

marital status.

3. Business cards

The exchange of business cards is an essential part of

initial meetings. It allows Koreans to quickly determine

their counterpart’s all-important position, title and

rank. While still standing, you should politely hand
 a

 business card over with two hands, and receive one in

return. Do not simply drop the card into a pocket;

instead take a few seconds to review names and titles. If

you are sitting down, place it on the table in front of

you for the duration of the meeting.

4. Gift giving

In Korea, the importance of a relationship can be

expressed through gift giving which is always welcomed.

Note though, it is inconsiderate to give someone an

expensive gift if you know that they cannot afford to

reciprocate accordingly. Gifts should always be wrapped

nicely in red or yellow paper, as these are royal

colours. Alternatively, you can use colours that

represent happiness: yellow or pink. Never sign a card in

red ink or use green, white or black wrapping paper. If

you’re invited to a Korean’s home then you should take

gifts such as fruit, good quality chocolates or flowers

and present the gift with two hands. Gifts are not opened

when received and will be done so later.

5. Korean names

Until you are on very good terms with a Korean

counterpart, it is best to use the family name preceded

by an honorific (such as Mr), whether speaking directly

to them or about them to another Korean. In settings that

 call for great respect or formality, you should use your

counterpart’s formal title and surname (Chairman Lee, for

example). Some also view their name as a very personal

thing, so a suggestion to work on a first-name basis may

be slow to be offered.

6. Bowing and handshakes

Koreans bow to those senior
 to them both as a greeting

and a show of respect. The junior person initiates the

bow, bending from the waist
 to an angle of between 30

and 45 degrees from vertical. A less accentuated bow is

returned as acknowledgment from the more senior person.

Bowing in Korea is not as pronounced as in other

countries, such as Japan. Greet the highest status

individual first, followed by the oldest when meeting a

group of Koreans. The individual with the highest status

usually enters a room first. For Australian business

people, extending a simple handshake when greeting and

taking leave is fine; just don’t be surprised by a two-

handed handshake and a bow during the course of an

initial meeting.

7. Building relationships

Building relationships is an essential part of doing

business in Korea. Relationships are developed through

 informal social gatherings and generally involve a

considerable amount of eating and drinking. Such

gatherings also present the opportunity for both sides to

discuss business in more relaxed and friendly

surroundings, including over dinner.

8. Dress code

Appearance is very important, and Koreans tend to dress

more formal. Business attire is conservative, with an

emphasis on conformity rather than individual expression.

Men should wear dark-coloured business suits with ties

and white shirts. Jewelry for men should be kept to a

minimum – a watch and a wedding ring would be fine. Women

should also dress conservatively and in subdued colours.

Reference:

AsialinkBusiness. (n.d.). Korean business culture and

etiquette. Retrieved from

https://asialinkbusiness.com.au/republic-of-

korea/conducting-business-in-korea/korean-business-

culture-and-etiquette?doNothing=1